Tue, Jun. 2, 6:41 PM
- Meg Whitman states at HP's (NYSE:HPQ) annual Discover conference the company's PC/printing spinoff will go into effect on Nov. 1, the start of HP's FY16.
- HP has also used the event to announce a partnership with fast-growing data center switch vendor Arista (NYSE:ANET) to provide a joint reference architecture for deployments combining Arista's switches, HP's servers and storage, and HP's OneView data center management software. The solution is partly aimed at common rival Cisco (NASDAQ:CSCO), which offers solutions pairing its UCS servers and Nexus data center switches.
- Other HP announcements: 1) A new hardware line for its 3PAR StoreServe array family (the StoreServe 20000) declared to provide flash capacity for 25% less than older offerings, as well as much-improved storage densities. 2) Helion CloudSystem 9.0, a new version of HP's cloud management software that supports Amazon Web Service, Microsoft's Azure, and OpenStack, among other cloud environments.
- Arista rose 2.7% in regular trading. After the close, Nomura launched coverage with a Buy rating and $79 target.
Mon, Jun. 1, 2:54 PM
- Cisco (CSCO +0.1%) CTO and chief strategy officer (CSO) Padmasree Warrior will be joining presidents Rob Lloyd and Gary Moore out the door before Chuck Robbins takes office as CEO, Re/code reports. Warrior has been Cisco's CTO since 2008, and its CSO since 2012.
- Meanwhile, Robbins has written a blog post noting Lloyd and Moore's pending departures, and his planned reorg. "Going forward, we will move to a flatter leadership team designed for the speed, innovation and execution that is required of us over the next decade ... I will announce my next generation organizational structure and my leadership team within two weeks."
- Earlier: Cisco presidents Lloyd, Moore leaving as Robbins takes over
Mon, Jun. 1, 9:36 AM
- COO Gary B. Moore and Development and Sales chief Rob Lloyd plan to leave Cisco (CSCO +0.5%) on July 25, the day before field operations SVP Chuck Robbins takes over as CEO. In addition, Robbins plans to unveil a "flatter" leadership structure on June 11.
- Moore and Lloyd were both named company presidents in 2012, fueling speculation they were the front-runners to replace John Chambers. Lloyd, in particular, became seen as Chambers' most likely successor.
- The announcement comes ahead of Cisco's June 8/9 investor meetings, which will be help amid the June 7-11 Cisco Live! conference.
Thu, May 28, 4:36 PM
Thu, May 21, 9:30 AM
- Alongside Goldman's list of 50 stocks appearing most as top holdings at hedge funds is its list of the 50 top shorts.
- New additions this quarter: Baxter Intl (NYSE:BAX), UPS, Marriott (NASDAQ:MAR), NextEra (NYSE:NEE), Ford (NYSE:F), National Oilwell Varco (NYSE:NOV), McDonald's (NYSE:MCD), M&T Bank (NYSE:MTB), CenturyLink (NYSE:CTL), Amgen (NASDAQ:AMGN), Pioneer Natural (NYSE:PXD), Duke Energy (NYSE:DUK), Seagate (NASDAQ:STX), AbbVie (NYSE:ABBV), Cisco (NASDAQ:CSCO).
- The full list (in order of $ value of short interest): AT&T (NYSE:T), Disney (NYSE:DIS), IBM, Verizon (NYSE:VZ), Intel (NASDAQ:INTC), Kinder Morgan (NYSE:KMI), Exxon (NYSE:XOM), Pfizer (NYSE:PFE), J&J (NYSE:JNJ), Deere (NYSE:DE), Caterpillar (NYSE:CAT), Exelon (NYSE:EXC), GE, Boeing (NYSE:BA), Halliburton (NYSE:HAL), Fox (NASDAQ:FOXA), Comcast (NASDAQ:CMCSA), UTX, Regeneron (NASDAQ:REGN), Merck (NYSE:MRK), salesforce.com (NYSE:CRM), AbbVie (ABBV), Conoco (NYSE:COP), Wal-Mart (NYSE:WMT), Eli Lilly (NYSE:LLY), Celgene (NASDAQ:CELG), Schlumberger (NYSE:SLB), AutoZone (NYSE:AZO), Wells Fargo (NYSE:WFC), Emerson (NYSE:EMR), McDonald's (MCD), Reynolds (NYSE:RAI), Target (NYSE:TGT), Accenture (NYSE:ACN), Coca-Cola (NYSE:KO).
Wed, May 13, 5:33 PM
- During Cisco's (NASDAQ:CSCO) FQ3 earnings call, John Chambers said he "would not bet" on a security M&A rumor heard today.
- That was an apparent reference to FireEye (NASDAQ:FEYE), whose shares jumped on unconfirmed rumors that Cisco had made a bid.
- FireEye has fallen to $41.71 in AH trading following Chambers' remarks. Shares are still up $0.41 from Monday's close.
Wed, May 13, 5:00 PM
- Cisco (NASDAQ:CSCO) guides on its FQ3 CC (webcast) for 1%-3% Y/Y FQ4 revenue growth and EPS of $0.55-$0.57, in-line with a consensus for 1.9% growth and EPS of $0.56.
- Product orders rose only 2% Y/Y in FQ3, a slowdown from FQ2's 5%. Service provider orders (-7%, with U.S. down 17%) remain a weak spot, as do emerging markets (flat, with BRIC markets declining). Enterprise and public sector orders (up 7% apiece, with U.S. orders respectively rising 21% and 24%) were healthier, as were SMB orders (+6%). Americas and EMEA orders were both up 2%, and Asia-Pac 1% (8% exc. China).
- Product line performance: Switching revenue +6% Y/Y in FQ3 to $3.56B. Routing +4% to $2B. Collaboration +7% to $973M. Service provider video -5% to $914M. Data center (UCS servers) +21% to $801M. Wireless +9% to $611M. Security +14% to $412M.
- Some strong points: 1) Meraki Wi-Fi hardware/software sales rose 92% Y/Y. 2) Orders for Cisco's APIC SDN controllers rose 27% Q/Q, and APIC customer count to 580 from 300+. 3) Security order growth (benefiting from broader cybersecurity demand) topped revenue growth. 4) In spite of soft carrier capex, high-end routing rose 5%, driven by CRS-X and NCS core router demand.
- CSCO now -1% AH to $29.06.
- FQ3 results, details
Wed, May 13, 4:26 PM
- Cisco's (NASDAQ:CSCO) product sales continued rebounding in FQ3 following a late-2013/early-2014 slump: They rose 6% Y/Y to $9.33B. Services revenue (relatively stable) rose 3% to $2.81B.
- Financials: Gross margin came in at 62.5%, topping guidance of 61%-62% and boosting EPS. GM was up 80 bps Q/Q and down 20 bps Y/Y. Thanks in part to job cuts, GAAP operating expenses rose a modest 3% Y/Y to $4.6B - $2.4B was spent on sales/marketing, $1.5B on R&D, and $510M on G&A. The deferred revenue balance rose 8% Y/Y to $14.2B.
- $1B was spent on buybacks, down slightly from FQ2's $1.2B. $5.3B is currently left on Cisco's buyback authorization. Cisco ended FQ3 with $54.4B in cash (much of it offshore), and $21B in debt.
- CSCO -0.2% AH - many expected solid numbers. CC at 4:30PM ET (webcast), guidance will be provided.
- FQ3 results, PR
Wed, May 13, 4:06 PM
Wed, May 13, 9:26 AM
- EZchip (NASDAQ:EZCH) uses its Q1 report to state its largest customer (i.e. Cisco) doesn't currently plan to use EZchip's NPS-400 network processor (NPU) in its next-gen edge router line cards.
- The company adds Cisco (NASDAQ:CSCO) recently began using EZchip's NP-5 NPU (entered production in late 2014), that it doesn't think "a next generation successor for the NP-5 is likely to ship for approximately three years," and that the NP-5 is expected to "continue generating revenues at this customer for several more years beyond this three year period."
- Concerns that Cisco could drop EZchip in favor of an in-house NPU have been around since the networking giant unveiled its nPower X1 NPU in Sep. 2013. At the time, EZchip said it believes Cisco hasn't made a decision on which processor will succeed the NP-5.
- Today, EZchip says it believes Cisco's next-gen edge router line cards will require more throughput than is provided by the NPS-400 (480 Gbps), and that Cisco is "currently developing such a solution in-house." EZchip, for its part, is working on an NPS-400 successor (the 1Tbps NPS-1000) that it hopes to sell Cisco on. The NPS-400 begins sampling in 2H15, and is being considered for other platforms at Cisco (as well as other clients).
- EZchip has tumbled to $14.28 in premarket trading.
- Q1 results, PR
Tue, May 12, 5:35 PM
Mon, May 11, 10:19 AM
- Pac Crest's Brent Bracelin has upgraded Cisco (CSCO +1.5%) to Outperform ahead of Wednesday's FQ3 report, and set a $36 target.
- Bracelin: "[T]he April quarter should mark the beginning of a multiquarter recovery for Cisco driven by several company-specific product cycle tailwinds across switching, routing, servers and wireless ... Possibility of a strong 2H rebound in service provider spending also gives us an upward bias entering F2016," Goldman argued in April 802.11ac Wave 2 Wi-Fi deployments will lift both Wi-Fi access point and campus Ethernet switch demand.
- Bracelin also consider SDN an opportunity for Cisco rather than a threat (others disagree), believes Cisco's InterCloud platform is growing rapidly (via service provider partners), and notes shares still only trade at 13x forward EPS (below the S&P 500's 17.6x).
- Oppenheimer reported positive Cisco checks last week. Bracelin's upgrade comes a week after Cisco named sales/partner chief Chuck Robbins its next CEO, surprising many who thought president Rob Lloyd would get the job.
Tue, May 5, 3:33 AM
- Cisco Systems (NASDAQ:CSCO) is set to launch a converged cable access platform, enabling cable operators to offer download speeds of one gigabit a second or more.
- The new cBR-8 system, to be unveiled on Tuesday, will "enable cable operators to achieve savings that could exceed 40% of capital and operating expenses over five years," the networking-equipment maker said in a statement.
- Yesterday, Cisco named company veteran Chuck Robbins as its new CEO. Robbins will replace John Chambers on July 26.
Mon, May 4, 8:45 AM
- Cisco Systems (NASDAQ:CSCO) has named Chuck Robbins its CEO.
- The move is effective July 26, at which time current CEO John Chambers takes on the role of executive chairman. Robbins was also elected to the board on May 1.
- Robbins joined Cisco in 1997. Chambers joined the company in 1991 and has been its CEO since 1995.
Fri, Apr. 24, 10:15 AM
- "We expect the stock to outperform on both upside to estimates and multiple expansion," writes Goldman's Simona Jankowski, putting Cisco (CSCO +0.4%) back on her firm's Conviction Buy list 17 months after pulling it. Her target remains at $34.
- Jankowski, who has long kept a Buy rating on Cisco, sees the adoption of Wave 2 802.11ac Wi-Fi systems not only boosting Wi-Fi hardware demand, but also (given Wave 2's bandwidth needs) driving sales of Cisco's 2.5G/5G campus Ethernet switches, and that the upgrades will amount to "a once-in-a-decade refresh").
- She also notes shares trade at a 30% discount to the S&P 500, and thinks that gap could narrow as more attention is given to Cisco's InterCloud platform (aims to provide a global network of public cloud infrastructures using Cisco products, via service provider partners) and IoT efforts.
Tue, Apr. 7, 2:41 PM
- Hoping to counter next-gen firewall leader Palo Alto Networks (PANW +2.7%), threat-prevention hardware/software leader FireEye (FEYE +4.5%), other smaller/share-gaining enterprise security firms, Cisco (CSCO +1.2%) has refreshed its ASA firewall line and rolled out new malware-protection and incident-response services.
- New ASA next-gen firewalls (feature technology obtained through the SourceFire acquisition) are declared to provide mid-sized firms and branch offices "with the same advanced malware protection and threat detection capabilities" enjoyed by enterprises. They combine standard firewall support with app visibility/control, malware protection, and intrusion prevention features; managed security services are provided for extra.
- AMP Threat Grid, a malware-protection solution made possible by the ThreatGRID acquisition, combines malware analysis with threat intelligence (based on behavioral indicators and a knowledge base); it's available either as a cloud service or through an on-premise appliance based on Cisco's UCS servers. Meanwhile, new incident-response services help companies probe and respond to cyberattacks. Cisco has already been rapidly adding to its security service portfolio.
- Cisco's security product revenue rose 6% Y/Y in the January quarter to $416M; Palo Alto and FireEye respectively saw 54% and 150% sales growth in their most recent quarters (the latter was boosted by M&A). Palo Alto recently launched a threat intelligence service (AutoFocus) to complement its popular WildFire threat-detection service. FireEye offers a slew of threat-prevention/intelligence services, and has been hired to probe several high-profile cyberattacks.
- Shares of all three companies are higher on an up day for equities.
CSCO vs. ETF Alternatives
Cisco Systems Inc is engaged in designing, manufacturing and selling of Internet Protocol (IP) based networking products and services related to the communications and information technology (IT) industry.
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